How
India Used Two Wheelers Market is Positioned?
The Indian
two wheelers industry has evolved in many folds in terms of technology
and total number of two wheelers being manufactured and produced. Two wheelers
in India can be seen as an alternative to walking, riding bicycle and public
transit systems. Presently, India is the largest producer and manufacturer of
two wheelers in the world followed by China. Rising fuel prices is one of the
primary growth drivers for two-wheelers due to their higher fuel efficiency. In India,
commuters across all age groups use motorized vehicles, especially two wheelers
owing to the escalating population and rapid increase in traffic congestion,
thereby making two wheelers as the most appropriate and convenient mode of
transportation in urban areas.
In terms of value, India used two wheelers market generated gross
revenue of INR ~ billion by selling off ~ million units in FY’2013. In the
pre-owned two wheeler segment, both motorcycles and scooters were observed to
become second vehicles in the households, thus showcasing high growth year on
year. Demand exists for two wheelers below 150 cc generally, from young male
students, especially in metro regions. The demand for used two wheelers has
seen a constant rise over the past few years, especially from models like Honda
Activa, Aviator, TVS Jupiter, Bajaj Pulsar and Discover. Even in terms of
exports, two-wheelers produced in India are the proud products of the
“Make-in-India” initiative where nearly 7 in 10 automobiles delivered out of
India are two-wheelers.
India Used Two Wheelers Market
Segmentation
By Market Structure
In FY’2018 the sales volume
through the unorganized sector individual sellers, local mechanics and small
dealerships collectively contributed to nearly ~% of the market. Indian
consumers who may want to use a vehicle for a short period of time or who may
not be able to afford a new vehicle find it convenient to visit a nearby dealer
and purchase it as per their budget. On the other hand organized sector was
observed to capture the remaining ~% volume share in the FY’2018.
By Distribution Channel of 2 Wheelers
Due to low awareness regarding
the existence of organized online and offline players, the majority of
transactions conducted in the market are through C2C or offline B2C channel.
The C2C channel controlled a share of ~% to the total sales volume in the used
two-wheeler market during the FY’2018. On the other hand, the B2C channel
controlled the remaining significant share of ~% in the used two wheeler sales
space.
By Stock Piece and Customized
Two Wheelers
During FY’2018, stock piece contributed to a majority of the used
two-wheelers sold in India and consisted of standard vehicles manufactured by
companies, thus evaluated at a volume share of ~% in India used two wheelers
market. The total number of individuals who are bike enthusiasts and are able
to afford expensive bikes constitute a very small proportion of buyers in the
market for new customized bikes, thereby capturing the remaining ~% volume
share in the FY’2018.
By Type of Two Wheelers
The share of scooters in the
used two-wheeler space was recorded at ~% in the overall sales volume during
FY’2018 in comparison to ~% in FY’2013. However, the market has continued to be
dominated by motorcycles with a massive volume share of ~% during the FY’2018.
This is because male riders travelling a longer distance still prefer
motorbikes instead of a scooter due to larger engine and greater mileage
offered by motorcycles.
Competitive Landscape in India
Used Two Wheelers Market
In the FY’2017, ~% of the used two wheelers market in terms of sales
volume was observed to be unorganized which comprises of individual sellers,
local mechanics and small dealerships. Whereas the remaining ~% of the market constitutes
of the organized players like Droom, CredR, BikeDekho.com, BikeWale.com, Mahindra
First Choice Wheels Limited (MFCWL), Bikers Highway and others. Certification
and authentication, brand, price, mileage and performance, engine quality/power
and total number of dealers are some of the critical parameters on the basis of
which Companies compete in the organized segment.
Snapshot on India Online Used
Two Wheelers Market
The online used two wheeler market has been emerging with the rise in
the popularity of E-commerce platforms in the country. Online platforms such as
Flipkart, Amazon and Snapdeal have enabled India users to trust online
platforms and make high value transactions online using their debit/credit
cards and net banking. The growth of online advertising, which has fuelled the
rise of online classified platforms such as OLX, Quikr, Gaadi.com and others
have revolutionized the way in which pre-owned vehicles have been sold in the
country. The online used two-wheeler market grew from INR ~ million in FY’2016
to INR ~ million in FY’2018. With the growth in the number of vehicles sold
online, these players not only witnessed a sharp growth in marketplace revenue
but also from other sources including advertisements, subscriptions and other
value added services.
India
Used Two Wheelers Market Future Outlook and Projections
It is anticipated that the used two wheelers market in the country
will continue to grow in the coming years as used vehicles are much cheaper to
purchase than a new one. Projections for the future suggest that the overall
market for used two wheelers in India is likely to showcase a vibrant growth
from ~ million units of sales volume in FY’2019E to ~ million units of sales
volume in FY’2023E. The CAGR during this period is expected to be around ~%
during the forecast period FY’2019E-FY’2023E. Individuals mostly in smaller
cities and towns who wish to own a vehicle begin with buying a second hand
two-wheeler to get hold of it. Similar is the case of women drivers who prefer
purchasing a pre-owned vehicle to learn driving before they actually purchase a
new vehicle. Also, local dealers who have been facing tough competition from
the online classifieds will be seen associating with the online players to
reach out to greater audiences.
Keywords Covered in this
report:- Used Two Wheelers
Market in India, India Used Two Wheelers Market, Preowned Two Wheelers Industry
India, Two Wheeler Aftermarket Industry, India Two Wheeler Sales, India Online
Used Two Wheelers Market, India Used Two Wheelers Sales, Used Two Wheelers
Services in India, India Used Two Wheelers Segment, Used Commuter Bike on Sale,
Type of Used Two Wheelers in India, India Used Two Wheelers Sales Volume, Imported
Used Two Wheeler Market, Online Sales Two Wheeler, Used Scooter Sales in India,
Used Bike Market in India, Financing Used Two Wheelers, Market Share Online
Auto Classified Market
For more information on the research report, refer to below link:-
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Us:
Ken Research
Ankur Gupta, Head Marketing & Communications
Sales@kenresearch.com
+91-9015378249
Ken Research
Ankur Gupta, Head Marketing & Communications
Sales@kenresearch.com
+91-9015378249
